June 19, 2014 - Written by John Cameron
STORY LINK Pound Exchange Rate Forecast - Sterling Rupee (INR) & GBP to Rand (ZAR) Lower
Exchange Rates Forecast for Pound to Rupee and Rand -
It wasn’t just the US Dollar which was affected by Federal Reserve Chairwoman Janet Yellen’s comments of last night; the Indian Rupee has climbed against the other sixteen most-actively traded global currencies by its largest amount in nearly four weeks during today’s session as a result of teh Fed Chair’s promise that the flow of easy money from the US will continue for some ‘considerable time’. The assertion that American interest rates will remain at close to zero per cent well into the future has provided emerging market currencies including the Indian tender with a much-needed boost.
Ankur Jhaveri of Edelweiss Financial Services Ltd. backed up this theory earlier, stating that, ‘the FOMC statement on interest rates is clearly positive for the rupee,’ and currency market participants appeared to agree, with the Pound Indian Rupee exchange rate sliding by a fifth of a percentage point to 102.2200 GBP/INR during early trading.
Pound to Rand exchange rate plummets today
However, the Indian unit was outperformed during this morning’s European equities session by a highly unlikely candidate; a strong bout of support for the South African Rand (currency:ZAR) sent the GBP ZAR exchange rate down to as low as 18.0210 earlier. The Rand has benefitted from yesterday’s domestic Consumer Price Index data which revealed that price rises in the African state had reached their highest level for almost five years.
The South African Reserve Bank is now coming under sustained pressure to hike its key lending rate by another 50 basis points sooner rather than later. The last South African interest rate rise, which came in January, appears to have had little to no success in dampening inflation, meaning that further SARB action is now required. Many analysts now forecast that the Pound South African Rand exchange rate will track lower towards a key band of support at 17.40 which it touched off last month.
Elsewhere, a weaker than anticipated set of May Retail Sales figures, published in the UK earlier, have hampered Sterling on the day. The downward revision to the counterpart April data has added to the short term downside pressure on the Pound.
International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way,
ensuring you get the best exchange rates on your currency requirements.
TAGS: Currency Predictions Indian Rupee Forecasts Pound Rand Forecasts Po Forecasts